What determines the risk structure of interest rates?

By studying past returns of bonds with different maturities it is clear that although they generally move together, interest rates of different categories of bonds tend to differ from one another in any given year, and the difference between the interest rates varies over time. Being able to understand why interest rates differ from bond … Continue reading What determines the risk structure of interest rates?

Productivity is the Key to Long Term Economic Growth

Economic growth, which consists in an increase in the production of economic goods and services compared from one period of time to another, and is measured by the change in GDP (Gross Domestic Product), is probably the main aspect on which we focus when talking about economics and the goals of government policies. This happens … Continue reading Productivity is the Key to Long Term Economic Growth

Sources and Dynamics of Technological Innovation

Technological innovation: Definition Technological innovation is a fundamental component of progress and is the main determinant of human development. It can be defined as "a process of broadening human possibilities, enabling individuals to enjoy a long and healthy life, to be educated and to have access to the necessary resources at a dignified standard of … Continue reading Sources and Dynamics of Technological Innovation

The Factors of Production

In Economics, factors of production are those components used in the production process for the creation of finished goods and services. The link between the quantity of individual inputs and the quantity of product obtained (output) is expressed by the production function.The factors of production that are traditionally identified in economic theory are land, capital, … Continue reading The Factors of Production